Pretty BIG jump over April ’15, check it out!
Deal of the Week
251 E Wallace Ave.
In-town Driggs city lot, this parcel has a high “walkability” score.
Why it’s a good deal:
It’s not so much that it’s a “good deal” at 58k for just .28 acres. It does however check boxes that other lots can’t. In-town, no cc&r’s, ability for a duplex, no size requirement, trees in the backyard area. Check.
Just reduced, $58,000.
How quick will it sell?
I’m not sure. It’s going to take a buyer that recognizes the in-town value.
MLS info below. Log in to save this property.
HOA’s & Rental Restrictions
If any of you read the local paper, or follow social media etc. here in Teton Valley, you probably remember the drama with a Condo Homeowner’s Association in Driggs, ID that made the decision to require landowners and property managers to restrict long-term rentals (longer than 30 days) to “single family” use. That association later defined single family as:
(In an email to TVRManagement & other local property management firms dated January 5th, 2016) “Tenant” is defined as a single person, or a couple living together as a family, regardless of gender. The other occupants may include the child or children of the “Tenant.” Occupancy of each rental unit will be restricted to a maximum of six (6) persons. No subletting shall be permitted. All other provisions in Section 8 of the Amended Rules and Regulations shall remain in full force and effect.
Many of us tried to make an argument that the HOA was in a violation of the Fair Housing Act, but remember the protected classes under the act are race, color, religion, sex, handicap, familial status, national origin. This does not include marital status or sexual orientation – however you will note “regardless of gender” in the above definition, which was a product of another issue which arose during the HOA’s – successful – eviction of all tenants that did not meet the strict guidelines above.
As mentioned above, that homeowner’s association was successful in evicting all tenants in violation based on their own definition, mostly due to threats of immediate action for hefty fines and liens. That sparked me to write a post on HOA Fines and the procedures HOA’s must follow.
Read the story here: Can Homeowner’s Assosiations fine me for violations?
THEN – (and rather ironically) Idaho Legislature amended the bill where I derived the information for the above article, House Bill 511 to go on to state:
(3) No homeowner’s association may add, amend or enforce any covenant, condition or restriction in such a way that limits or prohibits the rental, for any amount of time, of any property, land or structure thereon within the jurisdiction of the homeowner’s association, unless expressly agreed to in writing at the time of such addition or amendment by the owner of the affected property. Nothing in this section shall be construed to prevent the enforcement of valid covenants, conditions or restrictions limiting a property owner’s right to transfer his interest in land or the structures thereon so long as that covenant, condition or restriction applied to the property at the time the homeowner acquired his interest in the property.
With the above said, the HOA in this example in Driggs will probably keep the rule in effect stating that it was passed by the board prior to the amendment of this bill- whether that’s legal or not. In fact, the original amendment was passed by a board majority vote based on the board’s authority to do so… meaning there is a separate statement in the bylaws authorizing the board to make amendments without approval of the owners as stated in the bylaws. I am sure this statement was meant to be used in an emergency situation (authorizing emergency repair work without consent of the owners) and not for purposes described above, but I digress.
I am sure the situation with this particular HOA will work itself out. Despite my posts about HOA’s, they are not evil. They are created with a necessary purpose, and operated on a voluntary basis. Most of the time, (99% of the time) for good, genuine reasons. At least we know these situations happen elsewhere, and are gaining attention.
Then & Now, Teton Valley Land Prices
I was posting a few signs last week, and noticed an old (2007 or so) subdivision sign at Teton Meadows. In a way, it’s a testament of where prices once were. If you can’t read it, it says “Lots Starting at $265,000”. Yes, those were the old days. The height of the market, just before the bubble.
Then, the downturn. It would be hard to average prices at the worst point of the market, there just weren’t as many sales. Great Teton View Corridor lots went from 200k, to 50k, overnight. There was a lot of talk – PRICES WILL NEVER GET THERE AGAIN.
Or will they?
The bulk of our recovery and market stabilization cam over the last 24 months. In my opinion, and speaking in generalities, I would say we are 25% up, from the bottom. Look at market reports (you can check out the market reports tab on this site) and you will find that data shows a 30% increase in sales prices over the past 12 months. Based on this info is it feasible that prices will increase another 30% by this time next year? While I tend to agree (barring inflation) that prices won’t reach that 2007 mark, here are a few arguments as to how it might get close;
- I’ve seen a few outstanding sales (MLS #’s 15-2321 & 15-1331) in excess of 100k. Yes, these are some of the prime lots in their respective developments, but pretty big numbers nonetheless.
- Supply and Demand. I will do a “Then & Now” post for residential examples throughout the region in upcoming posts, but if you haven’t noticed, the residential market has exploded. We are nearly 100% recovered. Why? low supply and high demand. You will hear people talk about a thousand year supply, and that there are 400 residential lots on the market – but the always has been. That’s right, even in 2007, or 1999, there always has been a large supply. Prices go up, and they go down. The supply when talking just number of lots, has remained relatively close to the same. Remember, it’s a large valley. There are large Teton View Corridor lots, in-town lots, City subdivision lots, golf community lots, farm & ranch parcels, and so on.
- Cost to subdivide. This is a key point. In a continuation of item 2 above, remember our market is comfortable sustaining a large number of lots on market at all times. To sustain that supply, there has been continual development and growth. There was obviously heavy development in the 2007 era, but has been virtually “none, zero, zilch” since. We do have a good supply (and reserves), but it won’t last forever. The “Teton Valley Dream” will go on. People from all over the world will buy and sell lots, to own a small piece of our valley. In any case, the fear of “over development” has created a difficult environment for future development. By difficult, I mean difficult and expensive. New requirements in place for environmental testing, fire suppression requirements, etc.
The above said, and like always, the good lots always sell first. It’s not uncommon to see a 60k sale, and a 100k sale in the same development. There is a large supply of good lots, at prices substantially less than years’ past. Speculation? Of course, it always is. Do I think it’s a good time to buy a good lot? Yep.